Peso up after Trump statements, US GDP down dollar

The Philippine peso slightly appreciated against its US counterpart on Monday, as the dollar softened after recent pronouncements of US President Donald Trump, and the release of weaker-than-expected economic data.

The local currency gained 3 centavos to close Monday at P49.820:$1, versus last Friday's 49.850.

"Quiet trading as the pair consolidated," a foreign exchange trader from a local bank said in a phone interview.

"There were more flows than demand [for the dollar]... The Trump statements — the dollar weakened because of that," the trader said.

According to a report by Reuters, Trump on Friday ordered a 120-day ban on allowing refugees into the country. He also announced an indefinite hold on refugees from Syria, and a 90-day ban on citizens from Iran, Iraq, Libya, Somalia, Sudan, Syria, and Yemen.

"Several countries including long-standing American allies criticized Trump's directive as discriminatory and divisive, and tens of thousands of people rallied in US cities and at airports on Sundays to express their outrage," the report said.

Aside from this, the trader said the dollar also depreciated due to weaker-than-expected economic data in the US with the gross domestic product (GDP) only at 1.9 percent compared with the 2.2 percent expected by economists.

"That was also one reason why the dollar weakened," the trader said. — RSJ, GMA News